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Home Caregivers Wage Increase and Regulation

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A new rule enforced by the Obama administration requires home care individuals to be paid minimum wage, $7.25, and time-and-a-half for working more than 40 hours a week.

            In the past, caregivers were thought of more as baby sitters instead of real employees.

            Several trade groups, who represent agencies employing in-home care workers sued over the change in pay. They believed the pay raise would make in-home care unaffordable to disabled citizens.

            Originally, a U.S. District judge agreed with the industrial groups. But during an appeal, a panel of three judges decided otherwise.

            Chief Justice John Roberts allowed the rule to take effect in October of last year.

            Since then, different individuals have reported that they have had trouble receiving home care due to the increase in price. Some agencies offer limited hours to care takers to avoid over-time pay. Due to the decrease in hours, there have been care taker shortages within recent months and in-home care taker positions are difficult to fill.

            An official with the Paraprofessional Healthcare Institute, a group which supports the direct-care workforce, believes the raise in pay is necessary to “meet the growing demand for in-home care.”

            The group’s president, Jodi Sturgeon states, “We hope that state legislatures will move swiftly to ensure home care providers have the necessary fund to comply with the rule and avoid any disruption of services to consumers.”

Category: Disability Insurance - ERISA

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